Morning Crude Oil Market Report

September crude oil prices traded lower during the overnight and early morning hours after breaking out to a fresh three month high yesterday. There were reports overnight that the US might be considering the release of Strategic Petroleum Reserves in response to recent gains in crude oil. There were also comments from the UK energy ministry that it was preparing to consult the IEA on action to deal with higher crude oil prices. Some traders suggested that recent comments could be an attempt to talk the market lower. In the meantime, September crude oil prices are up more than 10.0% from the late July low and could be reaching overbought levels in the short term. The crude oil market might have also been weighed down by comments from Israel's president overnight that seemed to play down the threat of a unilateral attack against Iran in the near term.